GAIL to post Q3 earnings today; here's what brokerages are expecting

According to Edelweiss Securities, the continuing decline in oil production at ONGC continues to remain a concern, while the overhang of LPG subsidy sharing continues to loom over both ONGC and GAIL.

Gail India will announce its third quarter numbers on February 5. Various brokerages expect the company to report weak set of numbers due to lower petrochemical production and margin.

Edelweiss Securities expects Q3 net profit to increase 47.3 percent to Rs 1,859.3 crore against Rs 1,262.2 crore, while revenue is likely to rise 37.3 percent to Rs 19,792.1 crore as compared to Rs 14,414.3 crore last year.

According to the brokerage, the continuing decline in oil production at ONGC continues to remain a concern, while the overhang of LPG subsidy sharing continues to loom over both ONGC and GAIL.

Revenue growth is likely to slow down QoQ with flat volumes across segments offsetting higher realisations due to higher LPG prices and depreciating rupee, it added.

Antique Stock Broking feels that the company may report 11 percent jump in its Q3 net profit at Rs 1,399.8 crore, while likely to report 47 percent growth in sales at Rs 21,131.2 crore.

The firm expects GAIL to report sequentially weaker earnings on lower petrochemical production and margin as there was a shutdown at its PATA plant during 3Q.

In addition to lower utilization, while the raw material (gas) costs increased, PE realization dropped sequentially and lower LNG import is also likely to impact throughput in transmission and trading business.

Brokerage house ICICIDirect expects profitability to improve 9 percent YoY at Rs 1,377.1 crore supported by a stable performance in majority of the business segments.

Sharekhan expects the company to report a weak quarter due to lower margins in the gas trading business, given the unfavourable economics of the US LNG contracts and lower margin in the petrochemical

business.

The company is likely to post 10 percent jump in its net profit at Rs 1,387 crore, while sales may increase to Rs 17,777 crore, it said.

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